Is Cashback worth it? Understand when the benefit can help your finances

Cashback has become one of the most popular strategies among banks, credit cards and marketplaces to retain customers. According to the Brazilian Association of Companies in the Loyalty Market (ABEMF), almost 81% of consumers participate in a loyalty program, mainly motivated by cashback, discounts and accumulation of points.

In practice, cashback can help you save, supplement your income and even increase your financial return on everyday purchases. However, the benefit only makes sense when used with planning and aligned with the user's consumption profile.

What is cashback and how it works
The system returns part of the amount spent on purchases to the consumer, especially in the form of an account balance, credit on the invoice or discount on future purchases. The percentage varies depending on the company, the purchase category and promotional campaigns. The most common formats of loyalty programs are:

- Cashback direct to the account;
- Points accumulated to exchange for products or services;
- Airline miles;
- Progressive discounts;
- Exclusive benefits by relationship level.

On digital platforms, cashback usually appears on purchases made within partner marketplaces, service subscriptions, gift cards and even investments.

Cashback or points: which is more worth it?
The answer depends on each person's financial profile and consumption habits. While cashback offers immediate returns and more flexibility, points programs can generate greater benefits for those who travel frequently or use their credit cards a lot.

When cashback is advantageous
For many consumers, the service works best in situations such as:

- Need to save in the short term;
- Search for a quick return on the money spent;
- Moderate use of credit cards;
- Interest in investing or saving the amount received;
- Preference for simple and direct benefits.

When points can pay off more
Points programs tend to benefit those who:

- Travels frequently and uses miles;
- Concentrates spending on credit cards;
- Takes advantage of subsidized transfer promotions;
- Has good financial organization;
- Seeks premium benefits in travel and services.

In the case of Inter, the customer can combine both formats: accumulate points in the Inter Loop program and earn cashback on purchases made at the Inter Shop, gift cards and contracting services.gift cards and contracting services.

How to maximize cashback?
Receiving money goes through strategies that help increase benefits without compromising the budget which include:

- Know the rules of the loyalty program;
- Prioritize purchases that were already in the planning;
- Take advantage of temporary promotions with higher percentages;
- Make purchases at partner stores;
- Centralize recurring expenses on your credit card;
- Pay the invoice in full and without delay;
- Monitor the validity and rules for using the benefit.

Another important point is to understand whether cashback can be withdrawn, used on new purchases, converted into investments or transferred to another account.

What precautions should you take before using cashback?
Despite the advantages, the product should not serve as a justification for increasing unnecessary expenses. The most common risk is that the consumer will spend more just to receive part of the value back. Therefore, experts recommend some essential precautions:

- Avoid impulse purchases;
- Research the reputation of the platform before registering data;
- Check deadlines for receiving cashback;
- Understand the cancellation and return rules;
- Check if the benefit requires the use of a specific card or application;
- Monitor your budget to avoid creating debt.

Cashback can be an interesting tool for saving and improving the use of your credit card, as long as it is aligned with financial planning.

How to earn cashback and points at Inter
In the Inter Super App, customers can combine cashback and points accumulation across different services and purchase categories. Among the available possibilities are:

- Purchases at Inter Shop with cashback;
- Accumulation of points at Inter Loop using your credit card;
- Exchange of points for cashback directly into your account;
- Conversion of points into miles;
- Use of points to discount your invoice;
- Extra cashback at partner stores;
- Benefits on eligible investments.

In addition, Inter Loop points do not expire as long as there is continuous movement in the account, which offers more flexibility to accumulate and use benefits over time.

Source: CNN